Oracle (ORCL) Unlikely to 'Miss' in Q4 - Nomura
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Price: $132.49 +3.56%
Rating Summary:
49 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 83
Rating Summary:
49 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 83
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Nomura Securities analyst Rick Sherlund reiterated a Buy rating and $39 price target on Oracle (NASDAQ: ORCL) ahead of Q4 results on June 20th, saying despite erratic results this year it is unusual for Oracle to miss in fiscal Q4.
Sherlund comments, "We have updated our models for the closing of the Acme Packet acquisition and preview fiscal Q4 (May) results to be reported on June 20th and look at the set-up going into fiscal Q1. Oracle has shown erratic sales execution this year, but it is unusual to miss in fiscal Q4 given the intensive sales focus and customers are conditioned to wait for Q4 to get the best terms in their negotiations. Fiscal Q1 (Aug) should be less disrupted than usual by sales force changes. Mr Hurd said earlier in the quarter that there will be minimal changes that might disrupt Q1. Oracle needs to start by showing an in-line or better Q4, followed by some greater confidence in Q1 if there are minimal sales force changes. The hardware business might begin to show some improvement. The Buy-rated shares sell for 11.5x FTM EPS estimates, in line with the two-year average and below the five-year average of 12.6x, and 8.9% FCF yield. FY13E EPS at $2.69; FY14E EPS at $2.96."
For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.
Shares of Oracle closed at $33.82 yesterday.
Sherlund comments, "We have updated our models for the closing of the Acme Packet acquisition and preview fiscal Q4 (May) results to be reported on June 20th and look at the set-up going into fiscal Q1. Oracle has shown erratic sales execution this year, but it is unusual to miss in fiscal Q4 given the intensive sales focus and customers are conditioned to wait for Q4 to get the best terms in their negotiations. Fiscal Q1 (Aug) should be less disrupted than usual by sales force changes. Mr Hurd said earlier in the quarter that there will be minimal changes that might disrupt Q1. Oracle needs to start by showing an in-line or better Q4, followed by some greater confidence in Q1 if there are minimal sales force changes. The hardware business might begin to show some improvement. The Buy-rated shares sell for 11.5x FTM EPS estimates, in line with the two-year average and below the five-year average of 12.6x, and 8.9% FCF yield. FY13E EPS at $2.69; FY14E EPS at $2.96."
For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.
Shares of Oracle closed at $33.82 yesterday.
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